BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The rule of no consideration no contract does not apply to gifts. Explanation (1) to Section 25 of the Indian Contract Act, 1872 states that the rule of an agreement without consideration being void does not apply to gifts made by a donor and accepted by a donee.

Detailed explanation-2: -Section 25 This Section states that an agreement without consideration is void unless it satisfies certain conditions. For example, an agreement to compensate for something done in the past or an agreement to pay a debt that is barred by the Limitation Act are exceptions to the rule of no consideration, no contract.

Detailed explanation-3: -An exception to this rule is where there is a duty owed to a third party. An act done before the giving of a promise to make a payment or to confer some other benefit can sometimes be consideration for the promise.

Detailed explanation-4: -Consideration Not Necessary According to section 185 of the Act, no consideration is needed to establish an agency contract. In most cases, an agent is paid by commission for services rendered, although no payment is required at the time of the appointment.